Trump Targets China as US Bets on Domestic Solar
News Desk
Washington: The Trump administration has unveiled new trade measures aimed at strengthening US manufacturing of solar and semiconductor components while reducing the country’s reliance on China-dominated global supply chains.
The White House said a 15 percent tariff on polysilicon and products made from it will come into force on December 4, alongside new import requirements and minimum price thresholds for several solar and semiconductor-related products.
Polysilicon is a highly purified form of silicon and serves as a critical raw material for both solar panels and semiconductor chips. China accounts for a major share of global production, making the material an important point of dependence for US manufacturers.
Under the new policy, the US Commerce Department will also be authorised to develop incentives for companies that establish domestic facilities to produce polysilicon and related products.
The administration said the measures are intended to encourage investment in US factories and build more resilient supply chains for industries considered vital to artificial intelligence, energy and national security.
The policy could provide a boost to US polysilicon producers, which currently operate on a relatively small scale compared with Chinese manufacturers. Hemlock Semiconductor in Michigan and Walker Chemie in Tennessee are among the country’s major facilities.
Hemlock Semiconductor welcomed the measures, saying they could support additional investment and expansion of domestic production. Walker Chemie said it was reviewing the potential impact on its operations.
The US solar industry has for years accused Chinese producers of gaining an unfair advantage through government subsidies and selling products at low prices. Some manufacturers have also relocated production to other countries in an effort to avoid existing US trade restrictions.
The latest policy goes beyond polysilicon, setting minimum import prices for polysilicon, ingots, wafers, solar cells and solar panels. Officials say the broader approach is designed to strengthen the entire domestic supply chain rather than focusing on a single manufacturing stage.
US solar manufacturing investment has grown since Congress introduced tax incentives in 2022. However, much of the expansion has centred on final solar-panel assembly, leaving the country dependent on imported wafers and cells.
Several US solar companies, including T1 Energy, First Solar and Q Cells, have welcomed the announcement. T1 Energy CEO Dan Barcelo called the policy an important development for advanced manufacturing and the US energy supply chain.
T1 Energy is already investing $510 million in a new solar cell manufacturing facility, in addition to its existing solar panel plant in Texas.
The policy could also have consequences before it formally takes effect. Trade experts expect some importers to accelerate purchases ahead of December 4 to avoid the new tariffs and pricing requirements, potentially creating a temporary surge in imports.
Solar companies dependent on foreign components are meanwhile expected to use the transition period to revise supply agreements and prepare for higher import costs under the new system.
